The tokenization of real-world assets (RWAs) heralds the dawn of a new era in asset management. RWAs, defined as tangible assets with intrinsic value present in the real world, present a host of challenges that often deter wealth managers from their widespread adoption. Among these, regulatory complexities stand out as one of the primary barriers to the tokenization of real assets. Moreover, the liquidity of these assets (how swiftly they can be converted into cash without substantial losses) remains uncertain. Additionally, RWAs often demand extensive maintenance and active management. Valuing these tokenized assets also poses significant difficulties, particularly with illiquid or unique assets like artwork or intellectual property.

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The tokenization of asset classes and the integration of crypto-native investment principles will likely become a standard in the modern asset management. In light of that, having a clearer view on how the RWAs work and how the main challenges can be overcome can contribute to their further popularization.

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